NPAs may dip to Rs 9.1 lakh cr by FY20: Report

Indian banks’ gross non-performing assets (NPAs) stood at Rs 9.4 lakh crore as on March 31, 2019, said a joint study by Assocham-Crisil.

“There is a significant potential opportunity for stressed-assets investors, given around Rs 9.4 lakh crore NPAs in the banking system as on March 31, 2019. Of this, the corporate segment, which has seen active interest from most investors, is estimated to account for 70 percent,” the report ‘Bolstering ARCs’ said.

It said large stressed borrowers have debt aggregating to Rs 5.4 lakh crore, which is a huge playing field in itself for investors.

Of the total, National Company Law Tribunal (NCLT) list-1 and list-2 comprised around Rs 2.1 lakh crore and existing stock of NPAs comprised another Rs 2 lakh crore.

“Over and above this, assets of around Rs 1.3 lakh crore are estimated to be under stress but have not been recognised as NPAs, these assets could potentially slip into NPAs over the near to medium term,” the report said further.

Power, infrastructure and steel sectors together constitute about half of Rs 4.1 lakh crore worth stressed assets. Power sector accounts for the largest proportion, and resolution in this sector has not been significant.